Maharashtra: Transporters, traders hail scrapping of warai tax

The Bombay Goods Transport Association, a trucker body, had opposed warai and steered the movement. Representation Pic/Satej Shinde

Transporters and traders in Maharashtra are rejoicing about the scrapping of warai tax on the transport of goods and have thanked the Maharashtra government for the decision. Warai refers to local unloading charges exacted on an average per truck depending on the tonnage, and an official receipt is also issued in most cases. The taxes were largely misused and used to extort money by unidentified miscreants.

"With the circular dated January 16, 2024, issued by the marketing directorate of the department of cooperatives, marketing and textiles to the chairmen of Agriculture Produce Market Committees (APMCs) across the state, collection of warai tax has been scrapped. It will now be an illegal act to collect the amount towards warai and entry tax from the owners and drivers of the transport vehicles," Suresh Khosla, president of Bombay Goods Transport Association (BGTA), said.

The circular mentions that owners and drivers of the transport vehicles have nothing to do with warai. If anyone tries to collect warai or entry tax, strict action will be initiated by the appropriate authorities, Khosla added. It was the BGTA, a trucker body, that had opposed warai and steered this movement.

"This is a very good judgement and finally this just demand has been met by the state government. This may put a stop to harassment by local gundas and shall go a long way in improving the ease of doing business in the state. It is a very progressive step. We fully applaud this step," Atul Kothari, president, Shopkeepers Welfare Association, Mulund, said.

"For many years, lorry/tempo owners and drivers were silently suffering by heeding the illegal demands of certain local organisations/individuals. We opposed this and brought the matter to the notice of the authority concerned and followed up consistently for years. We have now got justice. We are thankful to the state government for its crystal-clear directive. We are reaching out to the transport fraternity informing them about this circular and urging them not to pay the amount as warai and entry tax," he said. "We are thankful to the marketing directorate for understanding transporters' concern and giving justice to over 20 lakh truckers in the state," he added.

In September 2023, mathadi (loader) leaders MLA Narendra Patil and Shashikant Shinde had requested Deputy CM Devendra Fadnavis to act as anti-social elements were forming mathadi unions for extortion as fake mathadis were hurting the industry badly and had complained that little action was being taken.

Patil said there are two types of warai: one that has been collected traditionally at APMCs, which has dedicated teams, and the other was being illegally collected across suburbs in the name of mathadis, which was a gross misuse. "The illegal one has now been curtailed, and we welcome this," he said.